Today's Veterinary Business

AUG 2018

Today’s Veterinary Business provides information and resources designed to help veterinarians and office management improve the financial performance of their practices, allowing them to increase the level of patient care and client service.

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32 Today's Veterinary Business Business
The National Veterinary Profes-
sionals Union, though not involved
with the San Francisco and Seattle
efforts, applauded both votes.
"We have multiple practices on
our radar," said President Liz Hugh-
ston, MEd, RVT, CVT, VTS.
Financial Backlash
Practice owners are naturally
concerned that the demands of
a unionized workforce would hit
their hospitals in the pocketbook.
"Speaking in general terms, if the
cost of operating a hospital increases
it would be natural for the hospital
to raise prices to cover any increase
in operational costs," said VCA's Drew.
"Or it might be necessary for the
hospital to reduce the number of
team members, as has happened in
other industries where wages went
up faster than expected because of
increased minimum wages.
"Animal hospitals typically do
not have high margins after capital
expenditures and taxes are taken
into account, so it would be natu-
ral for owners of hospitals to try to
at least offset additional costs that
are incurred."
Contract negotiations also
could require the hiring of an at-
torney to negotiate on the hospital
owner's behalf. And then there
are the obvious expenses likely to
result from talks, such as higher
wages and richer fringe benefits.
"How does that not drive up
costs?" said Mark Cushing, JD, the
CEO and founder of the Animal Poli-
cy Group consultancy and a Today's
Veterinary Business columnist.
"Two things are possible,"
Cushing said. "One is the costs are
passed on to clients, the other is
staff are laid off. The perspective of
the union would be, 'No, you just
need to make less money.' "
New Territory
Why would the 35,000-member
International Longshore and
Warehouse Union, traditionally a
representative of West Coast dock
workers, become involved with vet-
erinary employees? Ryan Dowling,
the union's assistant organizing
director, said the labor group works
with diverse professions.
"We have a long history of
organizing new workers and new
industries, everything from hospital
workers to police officers," Dowling
said. "I had never organized an
animal hospital, but I've done a lot
of human hospitals, so it wasn't
difficult for me to wrap my head
around how workers can come
together in that kind of situation."
Veterinary workers who orga-
nize under Dowling's union will not
pay dues until a contract is signed
with management. The process
that can last up to a year.
"Once workers come to an
agreement and vote to pass their
contract, they will pay dues to their
organization and the union will
begin to recoup that
cost and build up its
resources," Dowling
said. "The workers will
pay approximately
1.5 percent of their
gross pay on hours
worked."
Union dues are
spent in myriad ways,
said UCLA's Tilly.
"They pay for
union staff and an
office to handle activ-
ities such as organiz-
ing, communicating
with the membership,
collective bargaining,
pursuing any griev-
ances against man -
agement, and build-
ing up a strike fund
in case of a strike or a
lockout by manage-
ment," he said.
"Most unions also
use a portion of funds for political
action since so many labor issues
are now affected by laws and pub-
lic policies."
Plusses and Minuses
VanFleet, of the National Veterinary
Professionals Union, said higher
wages, improved working condi-
tions and better benefits would
help alleviate burnout, boost mo-
rale and reduce turnover.
"Employee support has been
overwhelmingly positive," she said
of the union discussions. "I think I
can count on one hand the number
of people I have talked to per-
sonally who said they didn't want
anything to do with it."
Cushing warned
of the negative con-
sequences of a union
on hospital dynamics,
especially if some
staff members do not
support the drive.
"How will that
affect the mood and
morale within what is
typically a small-busi-
ness environment?"
Cushing asked.
Could the pres-
ence of a unionized
staff hurt patient care?
"It is certainly
possible that cer-
tain work rules that
unions typically ask
for will affect the work
flow of a hospital and,
therefore, patient
care," VCA's Drew said.
"Other activities that
are not uncommon
when unions and companies can't
agree on a collective bargaining
agreement, like a work slowdown
and strikes, would certainly have a
significant impact on patient care."
Cost-cutting through staff re-
ductions could impact patient care,
Cushing said.
"Fewer employees means the
remaining staff have to do more
in the same amount of time with
the same number of patients," he
said. "It could also mean fewer
veterinarians or lower-compensat-
ed veterinarians, which can mean
fewer people are attracted to the
profession, or that veterinarians
who are paid less will be less mo-
tivated. So, I think there clearly is
that danger."
Union activists are familiar with
these concerns but downplay them.
"A cost increase to clients is
one way to pay for increased bene-
fits and pay for staff, but we believe
there are other ways to offset those
expenses," Hughston said. "One way
would be for a practice to accept
a slightly smaller profit margin,
to pay executives slightly less or
to pay slightly smaller executive
bonuses, for example."
Better wages and benefits
would reduce staff turnover, she said.
"Turnover is tremendously
expensive for a company," Hugh-
ston said. "And that expense isn't
just monetary; there is also a brain
drain. You're losing the years of
experience and training you have
put into that employee."
As for strikes, the International
Longshore and Warehouse Union,
like many of its counterparts, has
been involved in its share. Most
involved dockworkers and were
short-lived, but one in 1992 involv-
ing human medicine — at Summit
Medical Center in Oakland, Califor-
nia — lasted seven weeks.
No crystal ball can predict the
future of unions in the veterinary
industry, Tilly said.
"A lot of unions may be
thinking of this workforce," he
said. "A [larger] union, such as the
Service Employees International
Union, which has a strong war
chest, could potentially ramp up a
nationwide campaign."
Business
LABOR RELATIONS
A 2016 survey conducted by the National Association of Veterinary Technicians in
America found that 44 percent of full-time nurses earned from $15 to $20 an hour. About
1 in 5 made $20 to $25 an hour, and just under 10 percent grossed $26 or more an hour.
NAVTA noted that more benefits were being offered than ever before, through the group
pointed out that "a majority of VTs are still responsible for their licensing fees, association
memberships and uniforms."
The most common benefits were paid vacation (85 percent), free or discounted veteri-
nary care (82 percent), health insurance (74 percent) and continuing education registration,
travel and lodging (72 percent).
WAGES AND BENEFITS
"Two things are
possible.
One is the costs
are passed on to
clients, the
other is staff
are laid off. The
perspective of
the union would
be, 'No, you just
need to make
less money.' "
— Mark Cushing